Last July 13th, Mexico’s tax administration published modifications to the third miscellaneous fiscal resolution for 2016 along with its annexes on its website. The planned changes will become effective for taxpayers on August 15th ,although there are some exceptions. The supplement for payments will be mandatory 30 days after the tax administration has made it public.
Among all of the modifications, this new supplement is one of the most important and affects a large number of businesses and taxpayers. In the legislation, Mexico’s tax administration includes different situations for optional or mandatory use for payments made in relation to online digital invoices.
- Operation of payments in installments. Once the supplement for payments becomes active, it will be mandatory for all operations paid in installments. Companies will have to issue an electronic invoice for the total value of a transaction at the time it’s made. Then it must issue an online digital invoice for each payment made. To do this, it will be necessary to use the supplement for payments and the total amount of the operation in pesos.
- One installment payments, including credit transactions. In this case, using the supplement for payments is optional. However, those wishing to use the supplement may do so when a taxpayer makes one installment payment and when the electronic invoice is issued.
- Invoice protection. The supplement will limit the cancellation of electronic invoices since it’s evidence that the payment has been made fully or partially. If a correction is necessary, companies will have to issue a credit note that indicates the error. This way the new supplement will provide greater legal security to fiscal transactions, although this use is also optional.
What information will the supplement for payments contain?
The tax administration is currently working on the payment supplement, a process in which EDICOM, a company that provides certification services for online digital invoicing along with other groups in the sector, participated in. When it’s ready, the supplement will be published on the tax administration’s website. Although there may be some small modifications, the most foreseeable modifications is that online digital invoices will include the following fields:
- Date of payment
- Form of payment
- Field type
- Operation number
- Payer’s name
- Payer’s RFC account
- Payer’s account
- Beneficiary’s name
- Beneficiary’s RFC account
- Beneficiary’s account
- Payment chain type
- Payment certificate
- Payment chain
- Payment stamp
- Related documents
What are the advantages?
The supplement for payments, which includes the third resolution of modifications, comes at a time during which the electronic invoice is making great strides in Mexico. The tax administration addressed update 3.3 of the online digital invoice, which will take effect in 2017, with the objective of correcting some of the errors that have been detected over the past few years and to simplify tax compliance for taxpayers.
These same objectives are being pursued with the creation of the supplement for payments made. Its implementation will mean advantages in the administrative field for businesses. These are some of the advantages:
- It will avoid false duplications of payments made by installments.
- It will prevent excessive cancellation of invoices because some taxpayers have informed the tax administration that some suppliers nullified payment proofs without reporting the cause. This made deductions and tax credits impossible.
- It will allow one to know whether or not an invoice has been paid. This way, it won’t be possible for clients who haven’t made payments to use the invoice to deduct expenses.
- It will automate the process of capturing payments, which will minimize the time dedicated to this task while reducing human errors in the process.
- It will accelerate management processes.
Other Foreseen Modifications
Beyond the incorporation of the payment supplement, the third resolution of modifications will cause other changes related to the electronic invoice. In particular, it will modify the requirements of the printed representation of digital online invoices as well as some obligations of certified providers authorized to send digital documents. To learn more about these changes in depth, consult the tax administration’s website.